Tesla has introduced another round of price cuts, the sixth time it has done so this year.
Lower pricing appeared on Tesla’s website late Tuesday, ahead of the company’s first quarter earnings announcement later Wednesday. It brings the Model 3’s base price down to $41,380 with the mandatory $1,390 destination charge, down $2,000 versus the previous base price that was announced earlier this month.
2023 Tesla Model 3
This new base price effectively brings the price of an entry-level rear-wheel drive Model 3 to well under $40,000 when considering the base version’s $3,750 EV tax credit amount—if the buyer meets income requirements. This amount—half the potential $7,500 available from the federal government—is determined by new rules introduced Tuesday that take into account sourcing of critical minerals and battery components.
This time around, though, the Model 3 Performance doesn’t appear to have been given a price drop, while the entire Model Y lineup has been given a $3,000 cut. The base version now starts at $48,380 with destination, while the Long Range and Performance start at $51,380 and $55,380, respectively. As we recently reported, the Tesla Model Y is now competitively priced versus entries from other brands, EV or not.
2023 Tesla Model 3
The big turn happened in January, when after a series of price hikes Tesla cut prices across the board by up to 20%. The company then lowered Model S and Model X prices in March, with cuts of up to $10,000. It then lowered prices for both models again in April, bringing the base price of the Model S down to $86,380 and the Model X starting price down to $96,380.
The price drops of recent months, combined with a clear drop in demand relative to supply, has sent used EV values into a nosedive led by the Model 3. Tesla’s earnings update scheduled for later today will likely address the issue of production versus deliveries, perhaps indicating whether more price cuts might be on the way.
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